Laredo budget office outlines FY26–27 calendar, eyes 25% fund balance

The City of Laredo’s budget department opened the FY26–27 process on Feb. 26, presenting a tentative calendar and highlighting revenue trends officials said the council should watch as the city builds its balanced budget.

Jesus Esparza of the budget department said the fiscal calendar begins with a February kickoff, tentative budget workshops in March and May, submission of the proposed budget and CIP to council in July, and a public hearing and ordinance introduction in August followed by a September final reading. "This is an overall tentative calendar as we start the budget kickoff," he said.

Esparza said the department is prioritizing core services, aligning spending to recurring revenues, and evaluating the use of reserves. He proposed moving the city’s operating fund balance goal from the current 15% minimum to a 25% target. "We are progressing towards a 25% fund balance that we're trying to move from our 15% minimum," Esparza said.

On early‑year collections, Esparza told council that four‑month budget vs. actuals show roughly $4.4 million below budget for property taxes, about $852,000 short in licenses and permits, and a favorable $3.18 million variance for charges for services. He cautioned these are early variances and collections typically adjust over the year: "This is a 4‑month total of a 12‑month year, and so those numbers will actually catch up," he said.

Esparza added that the city had collected about 84.42% of its first‑period property tax levy of $98 million and noted bridge crossing (toll) transfer receipts were about $1 million beneath the four‑month budgeted figure (a roughly 6% variance to date). He recommended staff add comparative columns to future presentations showing pending vs. collected amounts to reduce misinterpretation of early variances.

Esparza also previewed two administrative resolutions that will be brought to council: a Grant Management resolution to ensure grant applications and long‑term obligations are vetted for cost and match, and a CIP resolution to strengthen project governance and lifecycle cost assessment. He said these steps are intended to align external funding pursuits with the city’s long‑term strategic and capital plans.

Council members asked for additional analyses and departmental wish lists to be presented at subsequent workshops so members could weigh requests against realistic revenue assumptions. Esparza said staff will provide more detailed breakdowns and follow up on outstanding items raised by council.